Investing.com — Shares of On Holding fell 5% in premarket trading on Tuesday after the Swiss running-shoe maker’s third-quarter profit beat was flattered by a one-off 52.6 million Swiss franc U.S. tariff refund, while revenue was only marginally above forecasts and it left its underlying full-year profit margin outlook unchanged.
On Holding AG reported adjusted earnings per share of CHF 0.54 for the quarter ended Sept. 30, versus the analyst estimate of CHF 0.38 and CHF 0.43 in the year-earlier quarter. Net income was CHF 162.8 million, versus CHF 118.9 million a year earlier.
Revenue was CHF 931.4 million, versus consensus of CHF 929.82 million, up 17.2% from a year earlier, or 17.8% at constant currency. Nine-month sales growth was 21.8% at constant currency.
The CHF 52.6 million refund lifted the gross margin to 72.6%, or 66.9% excluding the refund, versus 65.7% a year earlier. Adjusted EBITDA margin, an adjusted earnings measure, was 27.6%, or 21.9% excluding the refund, versus 22.6% a year earlier.
On kept its full-year net sales growth outlook at the low-20% range at constant currency, which it said implies CHF 3.47 billion to CHF 3.56 billion at current spot rates. It expects sales growth to accelerate in the fourth quarter.
It expects a full-year gross margin of around 67.5%, or around 66% excluding the refund, up from at least 65% previously. Its adjusted EBITDA margin outlook is 21% to 21.5%, or 19.5% to 20% excluding the refund, unchanged.
Sales in the Americas rose 12.4% to CHF 490.1 million, versus 17.9% growth in Europe, the Middle East and Africa to CHF 251.4 million and 31.1% in Asia-Pacific to CHF 189.9 million.
Direct-to-consumer sales rose 25% to CHF 393.3 million, making up 42.2% of net sales, while wholesale sales rose 12.2% to CHF 538.2 million. Apparel sales rose 38.7% to CHF 69.5 million.
Selling, general and administrative expenses were CHF 481 million, versus CHF 397.5 million a year earlier, while operating result was CHF 195 million, versus CHF 124.7 million.
Cash and cash equivalents were CHF 1.34 billion at Sept. 30, versus CHF 1.02 billion at Dec. 31, 2025.
Original Article
On Holding shares fall 5% in premarket as tariff refund flatters Q3 profit beat
Aaon rockets 22% premarket after strong earnings beat and raised outlook
